Abstract: The article investigates the impact of artificial intelligence (AI) on the economy of EU countries, identifying both opportunities and challenges. AI has the potential to boost productivity, drive innovation, and reshape industries like manufacturing, finance, and healthcare. Automation of complex tasks, cost savings, and operational efficiency improvements help businesses stay competitive globally. For example, AI-driven predictive maintenance in manufacturing minimizes downtime, while personalized marketing in retail enhances customer engagement.

However, the automation of routine tasks poses significant risks to employment, particularly for low-skilled workers, potentially exacerbating social inequality. The article stresses the importance of upskilling and reskilling programs to prepare workers for a digital economy. Initiatives like Digital Europe support the development of digital skills across the EU. Meanwhile, the evolving regulatory landscape, including the EU’s Artificial Intelligence Act, aims to ensure AI safety and accountability, especially in high-risk sectors such as healthcare and finance.

Nevertheless, regulatory inconsistencies across EU member states may impede AI deployment, and ethical concerns, including algorithmic bias and data privacy, require the establishment of robust ethical standards and oversight mechanisms. The article recommends that EU policymakers focus on fostering AI research, supporting SMEs, and harmonizing regulations across borders. Collaboration between regulators, industry, and civil society is crucial to addressing the ethical implications of AI.

In conclusion, AI offers transformative economic potential but requires a balanced approach addressing economic, social, and ethical factors.

Future studies should explore AI’s long-term effects on labor markets and access to technology, ensuring AI’s benefits are equitably distributed.